Announcement under regulation 30 of SEBI (LODR)
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The Board of Modern Insulators Ltd approved advancing unsecured loans of up to Rs 10 Crore to Modern Denim Limited, its group company and related party. The loan will be given in tranches on a need-based basis, primarily to fund Modern Denim's working capital needs. The company stated the loan is being given in the context of a proposed merger between Modern Insulators and Modern Denim Limited. Tenure and exact terms will be decided at the time of each disbursement.
This is a related-party transaction of meaningful size, and the explicit mention of a proposed merger between the two companies is a material corporate action signal that shareholders should track. Near-term, it signals cash outflow from Modern Insulators to support a group entity, while the longer-term merger could reshape the company's business profile.